Tag Archives: partner retirement

Trump & Trademarks: Managing Leadership Transition at Law Firms & What Not To Do

Speaking of the recent election, Jess Collen of Forbes, wrote, “If the candidates in an election between a former IP lawyer and a king of brand names don’t talk about trademarks in a campaign, no one ever will.”

Apparently, no one ever will. But that doesn’t mean that Mr. Trump won’t pull an ace from his sleeve during his presidency.

Trump, or at least his company, owns many trademarks. In addition, Trump has a reputation for being litigious.

Forbes alleges that there are likely more than one hundred existing federal registrations to Donald Trump and/or his companies. It might make businesses wonder if Trump is in favor of reorganizing the U.S. Patent and Trademark Office, or if he is happy with his current cache.

We will have a President who is hyper-sensitive to the value of brand names. Efforts by the courts, legislature or government agencies to lessen those protections will not find a receptive audience in the White House,” concludes Collen for Forbes.

“The incoming President may even argue that his success is built entirely on the fame of his marks. Will that matter?” 

Trademark law is not the only reason businesses are cautiously reacting to a Trump victory.

The pharmaceutical industry, where patent law is highly influential, has been especially tight-lipped in their reaction. Sucampo Pharmaceuticals (SCMP.O), which increased by roughly 31 percent after it raised its full-year sales forecast, was sure not to rock the boat of its shareholders this week, reports Reuters.

“Obviously Hillary Clinton’s agenda was much more well-articulated,” said Chief Executive Officer Peter Greenleaf about Clinton’s promise to regulate prices in the pharmaceutical industry.

“I will be interested to see what we learn as Mr. Trump takes office and we learn more about what his agenda is going to be for the industry.” 

Whether it is as a Presidential leader or law firm one, it is important to articulate a plan of succession. America’s biggest loss at a Trump win is the fact that the President-elect’s policies have not been specifically laid out. In fact, nobody knows what to expect.

In fact, a Trump win fueled a “violent reaction” in the bond market—spooked by Trump’s vague rhetoric calling for massive infrastructure spending and tax cuts, reports CNN Money.

Investors are worried—and confused.

Clients are often concerned for the future when a law firm partner steps down. In most firms, a minimum of 20 to 30 percent of a firm’s total revenue is controlled by partners over the age of 60; naturally, when those partners retire, it puts the business—and its clients—at risk.

Client relationships are your most valuable assets. But far too many firms neglect to plan for the inevitable retirement of senior partners.

Not only should law firms plan for the eventual retirement of senior partners, it should provide to clients detailed answers for the following questions:

  • Who determines whether clients need to be transitioned?
  • Who determines when clients need to be transitioned?
  • Who determines how clients should be transitioned?
  • When to tell the members of the firm (and clients) that a significant rainmaker will be reducing his or her active involvement in the firm?
  • How to select the most appropriate successors?

If you are a law firm manager and your firm has no such plan in place, take The Center For Competitive Management’s live webinar, “Transitioning Partners and Client Transfers: Guide to Retaining Key Clients When Partners Retire,” on Thursday, December 1st, 2016, from 2:00pm – 3:15pm Eastern (EDT).

This essential webinar will explain (1) how to make client transfer decisions for individual partners as they transition to retirement; and (2) how smart firms can prepare for issues associated with senior-level partners’ departure, before a client crisis occurs.

The stock market may not have fully recovered from a Trump victory, but your firm can protect its assets and clients from experiencing a similarly volatile leadership transition.

-WB

Leave a comment

Filed under Uncategorized